Pricing is an iterative process that requires a customer-first approach and more than just guesswork to get it right. When introducing new products, technology product managers must evaluate the merits of different pricing models to determine their best strategy.
- There's No "One Size Fits All" Approach to Pricing
- Value-Based: Optimizing Pricing Power to Align With Perceived Value
- Cost-Plus: Fixed Markups Cover Enough Margin to Yield a Return on Costs
- Price Premium: Higher-Value Product of Service, Anchored by Brand Value and Sentiment
- Going Rate: Matching the "Floor" or Skimming to Beat the Competition
- Commit to Knowing the Perceived Value of Your Product Before Pricing It
- Test Your Model With Prospects Early and Often
- Turn Pricing Into a Team Sport
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